Canada's Spartan Delta Q3 oil and gas sales jump 145% on liquids growth, increased Duvernay activity

Overview

• Canada oil and gas producer's Q3 oil and gas sales rose 145% yr/yr

• Q3 adjusted funds flow more than doubled from a year earlier

• Company raised Duvernay plateau production target by 50% to 75,000 BOE/d by 2030

Outlook

• Spartan Delta sees 2027 production at 62,000-66,000 BOE/d, 50% liquids

• Company expects 2027 adjusted funds flow of C$620 mln and capital spending of C$700-750 mln

• Company raises Duvernay plateau production target to 75,000 BOE/d by 2030

Result Drivers

• LIQUIDS GROWTH - Co said Q3 results were driven by sharp increases in crude oil and condensate production

• OIL-WEIGHTED TRANSITION - Co attributed results to ongoing shift toward oil-weighted production

• DUVERNAY ACTIVITY - Increased drilling and completions in Duvernay contributed to higher production

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

• Wall Street's median 12-month price target for Spartan Delta Corp. is C$17.00, about 30.2% above its November 3 closing price of C$13.06

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads

• Nov 3 - Canada's Suncor Q3 adjusted operating earnings jump on higher upstream prices

• Nov 3 - Ovintiv Q3 profit rises on higher energy prices, lower costs

• Nov 3 - Canada's PHX Energy Q3 revenue rises 24% to record on strong RSS activity, drilling demand

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)